French IMF chief to go on trial for alleged negligence

PARIS, July 22 (KUNA) -- French Director-General of the International Monetary Fund (IM), Christine Lagarde, is to go on trial in front of a special tribunal on allegations she was negligent in handling a major government payout to a business tycoon here in 2008, judicial sources said on Friday.
Lagarde, who was Finance Minister at the time of the big financial settlement, denies any wrongdoing and her trial in front of the Court of Justice of the Republic is the latest round in a judicial saga that has been going on for several years.
She was previously charged in relation to her role in awarding Euros 403 million to tycoon Bernard Tapie as damages for losses he incurred in deals with then-State bank Credit Lyonnais. The charges were later overturned on appeal.
The case against Lagarde stems from her decision to allow a mediation of the dispute with Tapie, instead of allowing the case to go to the courts. It emerged that Tapie actually knew at least one of the mediators well.
Tapie left France and settled in Belgium after the award and transferred his funds out of France but a French court in June said he should pay all of the money back.
Lagarde was part of the negotiations that led to the massive payout, which caused uproar here.
Despite judicial imbroglio, the board of the IMF has expressed full confidence in Lagarde who is viewed as a very competent chief of the Washington-based organisation. (end) jk.ajs